Article Summary
- In a major initiative designed to improve global standards of regulation of crypto-assets, IOSCO has set out how clients should be protected.
- The organization also set out how crypto trading should meet the standards that apply in public markets.
- expects that jurisdictions will review their current regulatory frameworks to ensure that they comply with the standards and fix any gaps promptly.
The International Organization of Securities Commissions Organisation (IOSCO) has issued consultation detailed recommendations, to jurisdictions across the globe as to how to regulate crypto assets.
This was contained in the company’s press release obtained by Nairametrics.
In a major initiative designed to improve global standards of regulation of crypto-assets, IOSCO has set out how clients should be protected.
The organization also set out how crypto trading should meet the standards that apply in public markets.
The G7 Finance Ministers: Jean-Paul Servais, Chairperson of IOSCO said:
- “As the G7 Finance Ministers and Central Bank communiqué of 13 May has once again reminded us, the time has come to put an end to the regulatory uncertainty that characterizes crypto activities.
- Today’s consultation paper received unanimous support from the IOSCO Board and is the outcome of an intense period of regulatory risk analysis, information sharing, and capacity building.
- As such, it will mark a turning point in addressing the very clear and proximate risks to investor protection and market integrity risks”.
What you should know
130 members around the world
Servais said with 130 members around the world regulating more than 95% of the world’s securities markets, IOSCO is best positioned to deliver an effective and globally consistent set of policy recommendations.
- “The strong support of the IOSCO Board will ensure the timely implementation of the recommendations by all IOSCO members to limit the risk of regulatory arbitrage.
- Strengthened cooperation between our members while supervising these markets through a global framework will contribute to protecting investors better and to credible deterrence of non-compliant actors,” she said.
Chairperson of the IOSCO Board-Level Fintech Task Force, LIM Tuang Lee, set up to develop the policy recommendations, said:
- “The Recommendations in IOSCO’s Consultation Report set expectations and guardrails to regulate and supervise crypto-asset markets, which are inherently cross-border in nature.
- Crypto-asset service providers need to address unacceptable conflicts of interest and take far more seriously the right of clients to have their monies and assets carefully minded and accounted for.
- It is time for Regulators to work together across borders and various jurisdictions to ensure that investor protection and market integrity are upheld in crypto-asset markets.”
IOSCO added that it has opened a public consultation on its recommendations, and aims to finalize them by the end of the year.
The organization added that it expects that jurisdictions will review their current regulatory frameworks to ensure that they comply with the standards and fix any gaps promptly.
